CFTC Chairman Rustin Behnam supports a bill that would allow the agency to regulate cryptocurrency markets
Other provisions of the bill require digital commodity platforms to prohibit abusive business practices, eliminate or disclose conflicts of interest, maintain adequate financial resources, manage robust cybersecurity programs, protect customer assets, and report suspicious transactions, according to the commission’s fact sheet.
Senator Amy Klobuchar, Democrat of Minnesota, asked Mr. Behnam how the CFTC would oversee a market surrounded by issues of volatility and fraud. Mr. Behnam emphasized that allowing greater transparency and regulation of digital assets would help solve these problems.
“(The bill) would give the CFTC the power to regulate the markets, and that volatility, fraud, and manipulation would probably go away, because we now have a regulator, a policeman, and that would deter activity by bad actors,” he told Ms Klobuchar. .
Senator Kirsten Gillibrand, DNY, also noted that the bill applies only to digital goods, meaning other federal agencies will still need to be involved in regulating digital assets as a whole. Mr. Behnam agreed, calling it “one piece of the puzzle”.
“We need to complete the bigger puzzle because if we are going to see advances in technology, in innovation, along with customer protection, market resilience and ultimately financial stability, depending on the size of the market, we need this patchwork to be coherent,” Mr. Behnam said.
SEC President Gary Gensler expressed his support at an event last week for the CFTC’s oversight of cryptocurrency, as long as the SEC regulates crypto-security tokens.